Logon Issues

I have a customer who is doing some SDK work and running into a really weird login problem.

He's built both an ASP.NET web app and a console app. Web app has no problems logging into the framework and works OK. Database is on a server, is not local.

Console app cannot log in. It throws a "PortAvailabilityDatabaseAccessException" when calling the LogOn method. Accessing the same database via the same .PAD file. Digging a little deeper into the exception also gives: "Network access for Distributed Transaction Manager (MSDTC) has been disabled. Please enable DTC for network access in the security configuration for MSDTC using the Component Services Administrative tool. The transaction manager has disabled its support for remote/network transactions. (Exception from HRESULT: 0x8004D024)"

Other options are the same - both targetting x86, .NET 4.0, Act! is 16.1